membership associations; fees; disclosures

Plain English Breakdown

The effective date is listed as the general effective date but no specific calendar date is provided in the source text.

SB1688: Rules for Membership Associations Using Public Money

This law requires certain membership associations in Arizona to list their fees online if they get most of their money from public officials or staff, and it stops the government from paying dues for any official who chooses not to join.

What This Bill Does

• Requires membership associations that receive over half of their yearly income from dues paid by elected or appointed officials or their staff using public monies to post all fees on their website.
• Stops a public body from paying membership dues if an individual official or staff member votes against joining the group after the public body voted to join.
• Defines a 'membership association' as a nonprofit where most board members are officers who support, advocate for, advise, operate, control, and supervise Arizona public entities.
• Excludes labor organizations from these new rules and definitions.

Who It Names or Affects

• Membership associations in Arizona that rely heavily on dues paid with public money by officials or their staff.
• Elected or appointed government officials who pay for memberships using taxpayer funds.
• Staff members of elected or appointed officials whose employers use public monies to pay association fees.

Terms To Know

Membership Association

A nonprofit organization where most board members are officers who support, advocate for, advise, operate, control, or supervise Arizona government entities. This definition does not include labor organizations.

Public Monies

Money held by state agencies, departments, boards, commissions, tax-supported local governments, or their officers and employees in an official capacity.

Limits and Unknowns

• The law only applies to associations that receive more than 50 percent of their annual revenue from dues paid with public monies.
• Labor organizations are not covered by the disclosure or payment rules in this bill.
• The specific date when these rules begin is listed as the general effective date, which is not provided in the source text.

Official Summary Text

SB1688 - 572R - Senate Fact Sheet

Assigned to
GOV����������������������������������������������������������������������������������������������� AS
PASSED BY COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

AMENDED

FACT SHEET FOR
S.B. 1688

membership
associations; fees; disclosures

Purpose

Requires a
membership association in Arizona that receives over 50 percent of its annual
revenue from dues that are paid by an elected or appointed official or a staff
member of an elected or appointed official using public monies to publicly
disclose all fees and annual membership costs on its website.

Background

Statute
authorizes various public entities to annually appropriate and expend public
monies in amounts necessary for the purpose of the entity belonging to and
paying dues in membership associations or other similar organizations (A.R.S. ��

11-252
;
41-125
; and
41-738
).

Public monies

are all monies coming into the lawful possession, custody or control of budget
units, state agencies, boards, commissions or departments or a state officer,
employee or agent in an official capacity, and all monies coming into the
lawful possession, custody or control of a tax-supported political subdivision
or an officer, employee or agent of a tax-supported political subdivision in an
official capacity irrespective of the source from which, or the manner in
which, the monies are received. The Gift Clause of the Arizona Constitution requires
all expenditures and obligations of public monies to be for a valid public
purpose consistent with a public entity's spending authority (
AG:
Agency Handbook
;
Ariz. Const.
art. 9 � 7
; and
A.R.S. �
35-212
).

There is no anticipated fiscal impact to the state
General Fund associated with this legislation.

Provisions

1.

Requires a membership association in Arizona that receives over 50
percent of its annual revenue from dues that are paid by an elected or
appointed official or a staff member of an elected or appointed official using
public monies to publicly disclose all fees and annual membership costs on its
website to ensure transparency regarding services and fees.

2.

Stipulates that, if a public body votes to join a membership association
in Arizona and an official on the public body or a staff member of the public
body elects not to join the membership association, then the dues assessed to
that official may not be paid to the membership association by the public body.

3.

Defines
membership association
as a nonprofit organization, the
majority of whose board members are officers who support, advocate for, advise,
operate, control and supervise public entities in Arizona.

4.

Specifies that a
membership association
does not include labor
unions.

5.

Becomes effective on the general effective date.

Amendments Adopted by
Committee

1.

Expands the requirement to include a membership association for staff of
an elected or appointed official.

2.

Modifies the definition of a
membership association
.

Senate Action

GOV�������� 2/18/26����� DPA������� 5-1-1

Prepared by Senate Research

February 18, 2026

AN/TR/ci

Current Bill Text

SB1688 - 572R - S Ver

Senate Engrossed

membership
associations; fees; disclosures

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1688

AN
ACT

Amending title 38, chapter 1, article 1,
Arizona Revised Statutes, by adding section 38-102; relating to public
officers.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the
State of Arizona:

Section
1.
1. Title 38, chapter 1, article 1, Arizona Revised
Statutes, is amended by adding section 38-102, to read:

START_STATUTE
38-102.

Membership associations; annual revenue; public monies; website;
definition

A. A membership association in this
state that receives over fifty percent of its annual revenue from dues that are
paid by an elected or appointed official
or a staff
member of an elected or appointed official using public monies shall publicly
disclose all fees and annual membership costs on its website to ensure
transparency regarding services and fees paid by elected or appointed officials

or staff members of elected or appointed officials using
public monies.

B. If a public body votes to join a
membership association in this state and an official on the public body
or a staff member of the public body elects not to join the membership
ASSOCIATION, the dues assessed to that official
or staff
member shall not be paid to the membership association by the public body.

C. For the purposes of this section,
"membership association":

1. Means a nonprofit ORGANIZATION,
the majority of whose board members are officers who
support,
advocate for, ADVISE, operate, control and supervise public entities in this
state.

2. Does not include labor
organizations.
END_STATUTE